After treatment, the idea of returning to the same chaotic environment you left can be daunting. More than 20 million people currently have some sort of addiction to drugs and alcohol.
They desperately need treatment to begin living a life of sobriety, and after treatment, they’ll need a place that provides them with a safe space to transition back into daily life slowly.
If you’re reading this, it’s safe to say you’re wondering how to start a sober living home? We’ve created a guide outlining everything you need to know to start a business.
Starting a sober living home is a wonderful way to provide resources to people in recovery.
What Is A Sober Living Home?
A sober living home is a place where people go after treatment when they cannot return to their previous environment. The main reason for not returning to a prior home environment is that it’s unstable and can be a trigger for someone fresh out of treatment.
Sober living homes provide a drug and alcohol-free environment where residents will learn to begin taking care of themselves following treatment. It provides the structure needed to get back on one’s feet.
You can expect to live with other residents who are also in recovery and will need to abide by the rules set in the house. Some of the services provided by sober living homes include:
- Assistance finding a job
- Group therapy meanings
- Continuing education
As mentioned, your sober living home should have a series of rules for all residents to follow. Some of these rules might be:
- Refraining from engaging in intimate relationships with other residents
- Pay rent and other household expenses
- Maintain a clean living environment
- Adhering to a nightly curfew
With this information on what a sober living home is, it’s time to get down to the steps you need to take to start a new business.
1. Perform A Market Analysis
In your area, is there an addiction crisis that needs a solution? The point of a market analysis is to gather information for your business moving forward.
You need to evaluate your business’s current position and if there is a need for your business. From there, determine what your vision will be for your company. You’ll research your competitors and the prices they offer as well as the promotional marketing strategies they use to advertise their business.
After you gather this information, you can use it to move into the next phase of starting a sober living home guide.
2. Create A Business Plan
Your business plan is an integral part of any business because it’s the plan you’ll present to potential investors as you search for capital to fund your business. The first thing to include in your business plan is the mission and goals you want to accomplish.
After you’ve done this, expound on what kind of business you’re starting and the services you plan to offer. It’s crucial to be as detailed as possible to reduce the chances of potential investors becoming confused about what you hope to accomplish by becoming a sober living homeowner.
From their detail, the type of resident you intend to start and how many residents can occupy the home at any given time. You should also be clear about how much you intend to charge each resident to live in the house.
Investors are keen to know how their funds will be spent and ensure it’s not wasted. Next, you should calculate the cost to start the business and outline how you intend to make the money back.
The plan should identify the location where you choose to start the home because it will need to be within places that residents have easy access to, like:
- Shopping centers
- Sobriety meeting centers
- Educational resources
Are you serving men and women? Do you specialize in providing services to members of the LGBTQ+ community? All this information and more should be discussed in your business plan and should be easy for investors to understand as they read through it.
3. Create Policies & Procedures
If there are no procedures or policies for residents and staff to follow, your sober living home can turn out to be chaotic. The policy handbook should be presented to each resident when they arrive to move in.
It should clarify that your sober living home has a zero-tolerance policy for any drug or alcohol use. It should also outline the expectations of each resident that applies and is approved to live there.
Before a resident is allowed to call your sober living home their resident, they must agree to the rules and policies you’ve given them. The manager of your home should require each resident to sign a copy of the policies confirming they understand them and the consequences that will take place if any of the rules are broken.
4. Secure Licensing
If you’re not licensed or certified to run a business, it could mean the end of the sober living home before you’ve had a chance to make a difference in your community. Take some time to review the licensing requirements to become a business in your area and submit your application.
Some requirements you might need to adhere to run a successful sober living home include:
- The facility must be adequately furnished and have supplies needed for residents to live there
- There must be a space provided for therapy groups to take place or a meeting area nearby
- No form of any substance is allowed to be used within the home
- If allowing tobacco use, there must be a designated outdoor space for residents to smoke
- No firearms or other illegal activities can be committed in the home
If you don’t comply with these rules and other requirements in your state, you won’t be given the green light to do business.
5. Hire The Right Staff
Having the right staff working in your sober living home is essential for running a business. The staff will act as the company’s first impression to all who seek to use its services.
Your staff should have experience in providing care to people in recovery. They should also be trained to provide quality customer service and remain professional at all times, no matter what.
It would help if you took the time to vet potential staff members carefully because you don’t want anyone disrupting the recovery journey of one of the home’s residents. Staff should also sign the policy manual detailing the rules of the house.
If they choose to violate them or cause problems for residents, they should understand their position will be terminated.
6. Obtain Employer Identification Number
The EIN or employer identification number is the number the government will use to identify your business when filing your business taxes. The application to apply for your EIN number can be found on the IRS government website.
Once you’ve filled out the application, you can fax or mail it to the number provided. Everything you collect from residents, including income records and expenses receipts, should be kept on file as you conduct business.
When it’s time for your business taxes to be filed, you’ll need to submit this documentation to your tax filer. If you don’t have an accountant, the time to hire one is before you start your business.
They’ll keep an eye on all funds coming in and out of the business and can provide helpful information on how to maintain control over the business’s cash flow. It’s also best if you take some time to study the zoning laws in your state.
The zoning laws are in place to keep you from running into issues with potential neighbors of the house that might not want to live next door to former addicts.
How To Start A Sober Living Home: Everything You Need To Know
How to start a sober living home? We’ve answered this question and provided tons of information you need to start a sober living home.
The first thing you need to do is analyze the need for this business and begin to create a business plan you’ll provide to investors. You undertake tons of work when you decide to start a business, but the payoff can be huge.
In terms of marketing, once you’ve opened your sober living home, register to create a listing on Taste Recovery. We’ll ensure that people searching for a place to continue their recovery journey will know your sober living home is the place for them to be.
Contact us and let us help you create your next listing.